Don't close your bank account before leaving the UK: What to do about tax refunds and pensions

Flight tickets booked, the house rented out, and the bank card canceled on the same day - three months later, HMRC sent a refund check worth a few hundred pounds to the old address in the UK, and the money could not enter any account that was still active. This is the most common and most unfortunate loss when leaving the UK.

The money to be handled before leaving is actually divided into three lines: refund, account, and pension . Each has its own timeline; if the order is messed up, you'll have to go around again.

How to get a tax refund when leaving the UK? Two prerequisites for Form P85

UK income tax is estimated based on annual income and withheld monthly. You left in September, but the system withholds tax assuming "you will work until April 5th of next year," and you need to actively claim back the overpaid amount.

Tools are P85 (Get your Income Tax right if you're leaving the UK). GOV.UK clearly states: applies to those who have lived and worked in the UK, left and may not return, or will work full-time overseas for at least one complete tax year.

Two operational details are most easily overlooked: , you can only print and mail it out before the person leaves the UK, online declaration is only open for those who have already left the country; when you resign, the P45 you receive should have the second and third copies submitted together.

HMRC clearly states: it does not bear the cost of converting refunds into foreign currency or transferring them overseas. Checks will be sent to the current address registered in the system. Therefore, do not close your UK bank account before the tax refund is received.

Can ISA and bank accounts remain after leaving the UK?

The ISA rules state that after becoming a non-resident, you cannot make further contributions to your ISA starting from the next tax year , but the account can remain open and the money inside remains tax-free in the UK. You need to inform your ISA provider that you have moved away; don't wait for them to find out.

Here's a recent change that has just taken effect: From April 6, 2026, overseas periods can no longer be used to make up Class 2 contributions, only Class 3. The weekly rate jumps from a few pounds to about £17.75 (about £923 per year), and new applicants must meet either "continuous residence in the UK for 10 years" or "having 10 qualifying years". The form is CF83, please read the NI38 guidance before applying, and the exact rates are subject to HMRC's annual announcement.

Another reminder: people abroad can still receive the State Pension, but the annual increase only applies in EEA, Gibraltar, Switzerland, and countries with relevant social security agreements with the UK. In other places, the amount will be frozen at the level when it was first claimed. This is a pure rule, and it's good to know in advance to make arrangements.